tv FOX Business After the Bell FOX Business October 25, 2012 4:00pm-5:00pm EDT
dave: we are about to get earnings from expedia. they are not doing as well but not so royal caribbean. big update for them. nicole: obviously their portfolio is up somewhere else and some were in line like that. dave: we will come back to you as the situation warrants on wall street. you can hear the bell. the numbers are positive but not so with some of their stocks which expect earnings. we mentioned expedia and apple. everything could change in the next hour. obviously if they beat expectations you can expect to see a bump for apple but all the indices are in the green. that is good news. not wildly so but solidly so. dow jones of 27. the s&p up 4.2 and the nasdaq up a fraction and the russell 2,000 not doing that at all. small and midsize caps up 0.38%. liz: look at auto dealers. we wanted to pick this out
because they are the big losers. on row nation seeing the biggest decline since january. it reported a 15% rise in earnings, missed and with expectations but they beat a lot of records. crewon automotive moving in reverse despite record profits. record profits moving down because they failed to meet expectations. the analysts got a little bullish. both are showing double-digit gains. stock look good. dave: would you buy the debt on the stock? they are buying on the dip. gold testing its $1,700 low. as soon as it hit the 1701, i think it was 1701 it took off again. it is not a tremendously but significantly off. a lot of people were looking at 1700 as the base. when you go below that it would drop further. if it bounced off of that it would go up. some people say up to $1,800.
liz: another big name is amazon. we are keeping a close eye on amazon's revenue growth and profit margin especially when selling its kindle tablets, just about a cost though the kindle has been on fire. let me check as we look at these numbers. stock is moving lower. the last rate $222. right now the bid is $212. dave: a lot of these products being sold. they have to spend to grow. they have been doing this for quite a while. when you spend to grow obviously sometimes you take a hit and it appears they have taken that it today. it is trading midway in between that average. was as low as 166 conlan as high as 264 and is trading in the $260 range.
consul energy forecaster kevin demand and focusing on one developing country to drive its business. the ceo will be telling us what that country is straight ahead. connell: the maker of those colorful resin clogs, some of the new law amend some of you hate them. a lot have them. they have a plan to boost demand. john joining us in a fox business exclusive straight ahead. no where else but fox. connell: we will tell you what drove the markets with the data download. stocks holding on to modest gains in the last hour of trading. the s&p's worth 5 day stretch since may. all the major indices closing the day in the green. health care and energy were the top performers. telecom and materials laggards. manufacturers' orders for long-lasting durable goods posted the largest gain in 2-1/2 years jumping 9.9%. last month's rebound from august's was led by rising
demand for aircraft and defense products. take those out of the picture and it didn't look so hot. u.s. weekly jobless claims fell more than expected dropping to 369,000. the prior week's figure was revised higher by 4,000 to nine 2000 to match this year's highs touched in april and june. all of that focus on what happened in california. those extraordinary numbers that appeared too good to be true were too good to be true and they had to change as a result of that. >> shares trading down after hours. earnings per share loss of $0.23. the street was expecting a loss of $0.08. revenue at $13.8 billion. the street was expecting $13.9 billion. one thing, the approach is to work hard and charge less and sell devices near break-even and you can pack a lot of sophisticated hardware into a low price point but the question
is how well is the device trumping this market. it would seem right now they are missing as far as what wall street expected. dave: this is close to a 10% loss. we have mark sebastian in the pits of the cme. big loss for amazon. is that loss going to hold that after-hours trading loss, it is down to 206. will that hold tomorrow morning? >> i think so. we are waiting on apple. that could be a game change. i was watching amazon closely because it is a big international sales company. walmart is ten times the sale but amazon has customers all over the world's. i was watching the revenue number closely and the fact that they missed the revenue number really bothers me. it shows real weakness in the international economy.
that doesn't bode well. that was what was holding off the s&p all day. we have sold off four points after-hours. i think if we didn't have avalanche amazon out "after the bell" you would have seen a real rally in yes indeed that these major earnings announcements keep missing. we are not going to rally until we are through this earnings season. this earnings season has been abysmal so far. we are only of 4%. liz: this is brilliantly run but the price to earnings ratio is 99. the trail is 275. it is a very expensive stock. people have waited for this to happen. they knew there were going to be problems. the kindle fire, $199 kindle fire is the best-selling product worldwide for amazon. they created hardware, they're doing great, but not selling
enough with enough of a profit margin. >> i think the things that are worrisome our sales growth is slowing, outgrowth on site is slowing. amazon is getting more competition from flash sale, ebay, you name it. right now they are the internet version of walmart. everyone is gunning for them. they need to stay on top of their game. long-term plan, you can't win the war if you're going to lose these battles and that is happening now. connell: let's bring in our panel. stifle nicholas managing director, and the chairman and chief investment officer. chris, is it possible, you see the possibility of a 20% to 30 present pullback in the market overall.
that is kind of hurricane sandy, perfect storm developing if that happens including going off of the fiscal cliff but could this be the beginning of it? for example, apple disappoints the way amazon just has could that be the beginning of a real big pullout of 20%? >> we have started a correction because earnings are disappointing. it does take a perfect storm for us to go down 20% to 30% but the reality is we have to have revenue growth in this country and to sustain profit growth. we are not going to get that. companies are showing they are vulnerable to the slowdown in revenue growth and that will eventually make it very difficult to grow their earnings. that will cause stocks to pull back. liz: let's see if there's revenue and profit growth that expedia. >> wall street should like this. earnings per share, $1.32. they were expecting a one dollar and $0.26. revenue came at $1.19 billion.
the street was expecting a one$.7 billion and even with top simes we have seen revenue continue to go up. it was up 14% in the second quarter to 1$.4 billion and now $1.9 billion. liz: in an area where there is discretionary spending, there is a bead on the bottom line. i think as bad as mark sebastian said they were? >> there is a big wall of worry concerning a lot of things and everyone has no revenue growth was slowing down. 27% of u.s. companies are exposed to the european slowdown and they are going through some tough times but that being said names like amazon, the stock is off 25% from its recent highs the few months ago. this name is attractive at these levels because we look at the big multi conglomerate like fedex fedex is saying they think all they see and will be strong. we can see 13% year over year
growth in consumer spending. they will be spending names like amazon and overstock. it is an interesting difference between fedex and amazon. amazon has come down quite a bit. with today's full back quite a bit where fedex has remained healthy. would that force you to focus on amazon and buy it cheap? >> i would be focusing on amazon as we go into the holiday season and a smart time to pick up is going to be right past the election. one thing way and on the market, investors are buying a lot of protection against the market going into the election. we are sitting here looking at outstanding contracts tied to the vix region all-time highs. we are watching the vix of 20% and the value of outstanding outputs, $70 billion all tied to the election. as soon as the market gets over this wall of worry we will see a lot more confidence coming back into equities and that will
benefit names like amazon and fedex. they're doing well because the dollar is rallying and cost of fuel coming off. dave: appreciate it. thanks for rolling with the punches. liz: apple has critical product but the stock has been pulling off. can earnings live up to expectations? we will have the numbers as soon as they are released. plus analysts tells us why he is concerned about the competition. liz: dave: microsoft unveiling windows 8 today. can windows be cool again? it seems like ancient history. find out what ceo steve palmer says about his latest prize and a consumers' move from pcs to mobile devices. if they don't succeed is it the end? liz: how cool are your feet? for a while croc was super hot but falling demand, is it just a
seasonal thing for a shoe that is always known as the floating summer shoe? later this hour you might be surprised to hear from ceo john mc, about how the new line of. is doing. he joins us on fox business. [ male announcer ] this is steve. he loves risk. but whetr he's climbineverest, scuba diving the great barrier reef with arks, or jumping into the marke he goes with people he trusts, which is why he trades with a company that doesn't nickel and dime him with hidden fees. so he can worry about other things, like what the market is doing and being ready, no matter what happens,
our abundant natural gasis, producing cleaneectricity, putting us to work here in america and supporting wind and solar. though all energy development comes with some risk, we're commted to safely and supand responsiblyd solar. producing natural gas. it's not a dream. america's natural gas... putting us in control of our energy future, now.
liz: s&p futures are closing. let's go to mark sebastian for a look at housing. >> we had a big push down on amazon earnings. everything we lost, we are a little higher than the 3:00 close. it looks like sentiment is a little higher on apple earnings. sentiment is so bad on apple, if they meet or beat expectations look for apple to skyrocket. if famous look for them to test the 200 day right around 585. liz: dave: you got to see what is going to happen. will come at around 4:30. they are not always exactly when
they say they will come out so you have to stay with us. we have the analysts who know this stuff and analysts talk of the stock, the analyst who is very conservative about the way he looks at apple. he will give us a fair analysis once we get that. let's go to nicole petallides on a floor of the stock exchange with another look at pandora. >> this is where the action was. we had the stock halted for volatility. let's look at where pandora closed at $8.20, a loss of 12%. a huge crowd here as they started to get headlines that apple was looking further and having internet radio service and pandora actually came out with a statement saying we don't comment on rumored competitive news. that is what we are hearing from pandora but we saw stocks hitting a new low in the $7 range.
let's look at amazon.com. they miss the top one and the bottom one and their numbers for earnings per share coming in at a loss of 20% which was more than the $0.08 loss and revenue for the third quarter, thirteen$.81 billion and that was weaker than expected. $13.2 billion is what we were hoping for. another reason amazon did not meet numbers was they have invested in the daily deal company living social and charges related to that was one of the reasons amazon saw the weakness and forecast this week as well so watch for that. liz: microsoft's latest version of its operating system, windows, everyone waiting for this. today is the day and the surface tablet made by microsoft hit store shelves. microsoft ceo steve palmer told fox business he sees the software giant trumping apple and google in sales of devices
bigger than 5 inches this quarter. dave: steve ballmer said the company is facing other head winds. may be surprised about his biggest concern. robert gray spoke to him earlier and joins us now with the details. what is his number one concern right now? robert: i asked him about a global tech slowdown. we have seen it in a lot of earnings reports. you would be surprised to know that it is not the global recession we are seeing. instead the number one concern was where a lot of people are looking for profits and that is china. >> the big addition is china which has been growing for most folks but the intensity of software piracy in that market will do less revenue in china and we will in the netherlands which is crazy when you say that but that piracy in china has cost billions of dollars of revenue and thousands of jobs in
the united states and we are working hard with the chinese government and the u.s. government to improve the situation. robert: they are looking for windows 8 to jump-start the moribund pc market. they're predicting pc sales will drop this year for the first time in more than a decade and they're making their first foray to their own computing hardware. this is the surface tablet that it's for shelves tomorrow and they are real imagining the windows experience, more of a touch screen on a tablet or pc and a lot of investors i'm talking to say steve ballmer may be held to the fire if this isn't the seminal moment in my chris of history he proposes that it is. liz: they are all waiting on it. they have a bunch of product and you can sell what they bought already and of great you automatically. it could inspire buying other companies too. >> absolutely right. analyst rob interleaf thinks the surface is a potential i had
killer and hitting apple where they are weakest with the software and also the clout and the designer around it where he contends apple does the opposite starting with a sleek unit and putting engineering in side. don't have to wait long to hit store shelves. dave: if the non geek can adjust to this change, even some peaks are saying it is tough to get in and out of the there when so we will see what happens. consul losing $11 million in the third quarter but coal and natural gas producer was hit hard by some shutdowns. that is in the past. find out why the ceo of this coal and natural gas company sees better times ahead and what he thinks about some fro coal comments made by rigged -- mitt romney during the debate. he joins us exclusively coming. >> we are waiting on apple earnings. they are imminent. expectations too high this time around. stock has shown weakness.
thanks for coming in. we just heard steve ballmer tell us one of his biggest concerns is china and the slowdown of china and that lack of demand is bothering microsoft. is it also weighing on the demand for coal and other energy? >> their economy is slowing down. the demand for energy. keep in mind their industrial revolution. worldwide there is 1.5 billion people moving into the middle class that just need electricity for the first time. cola's a good market going forward. dave: you missed expectations. is china one of the reasons why? >> china has slowed down. that is part of it. worldwide things have slowed down. the u.s. decided we are not going to use growth of coal as part of the economy going forward at least in the short term. it has slowed down but it will speed back up like all economies
do. dave: let's look at the bright side. if you could push back the director of the three month chart of consol energy. you see a little bounce about two thirds of the way in and maybe it is just coincidence but it corresponds to something mitt romney said in the first debate. let's play the quick and get you to respond. >> i will make sure we can get to burn clean coal. dave: he has been doing a little better in the polls recently. are his remarks one of the reasons cold turned around a month ago? >> i think that is one of the reasons and people are speculating that the economy is going to rebound and that is directly related to energy and coal is the base of energy but he understands coal and understands america has 30% of the world's coal. to move if forward is good red white and blue jobs. dave: what do you feel when you heard him specifically pull
out:the representation of what he wanted to grow in this country? >> i felt like he understood the base economy as related to low cost energy and coal is our case in the hole. he understands it. he has a good energy plan that coal is a big part of. plants go under the last four or five years. is this going to change that and does it change your plans? >> coal plants are important. we burn a billion tons of coal year in the united states. there are less plants than there were before and president obama said he didn't want any more bills. if we have a change in presidency we will keep our low-cost energy moving forward and use of american coal which is red, white and blue. dave: natural gas, a lot of company switching to natural gas, elector companies. there are new epa ruling about
getting natural-gas. how is that affecting your business? >> it titans the market. prices rise as you restrict license to operate. the more burden you put on any product the more it costs the consumer is. the epa's reaction to that will lag a little bit, but it is a game change that we are finding all this natural gas and is good for america as well. dave: great to see you. thank you for coming in. liz: the big question is is apple going to do it again? under promise and over the liver, hit it out of the park with help from the i phone 5. we expect earnings any moment from apple. we will bring those numbers as soon as they are released. look at the ipad mini and whether it will be as big a hit as its of the recent releases. we already heard from investors, not happy with the forecast they came out with.
oh, hey alex. just picking up some, brochures, posters copies of my acceptance speech. great! it's aays good to have a backup plan, in case i get hit by a meteor. wow, your hair looks great. didn't realize they did photoshop here. hey, good call on those mugs. can't let 'em see what you're drinking. you know, i'm glad we're both running a nice, clean race. no need to get nasty.
here's yr "honk if you had an affair with taylor" yard sign. looks good. [ male announcer ] fedex office. now save 50% on banners. [ male announcer ] fedex office. take the steps to reach yours, everyowith usgoals. with real advicefor real goals. the us bank wealth manement advisor can help you. every step of the way. from big steps, to lite steps. since 1863 we've helped guide our clients, so they can take the steps to help grow, prerve, and ss along their wealth. so their footeps can help the next generation find their own path. all of us serving you. us bank ♪ [ male announcer ] every car we build st make adrenaline pump and pulses quicken. ♪ to help you not just to staalive but feel alive. the new c-class is no exception.
it's a mercedes-benz, through and through. see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services. daaid: apple, the biggest company in the world just released its numbers. adam shapiro go ahead. >> on revenue, 36 billion, david. the street was expecting 35.8 billion. per share $8.67. street was expecting $8.75 per share a couple numbers investors want to pay attention to. they sold 14 million i pads during the quarter. 26% unit increase a year ago, but that is down, consideeing 1 million ipads they had sold in the previous quarter. on iphones, $26.9 million iphones which is pretty good number compared to what the street had been expecting. david? david: it is although we have analyst said it needed to be more than 28 million
iphones. he has other things to say about this. he is with jmp securities. and you know there are some apple analysts who were too willing to give apple a pass but not our next guest. alex, what do you think of these numbers? you said iphone sales needed to top 28 million. they came in at 26.9. >> i think the whisper number was 28 million not too long ago. as you have seen with the correction in the stock i think some of those expectations have come down somewhat. it is a good number especially in the environment what amazon has printed. it's a tough environment. that is a good phone number. what is disappointing is the ipad number. that is even weaker than what people deduced that the announcement they reached 100 million cumulatively at the mini ipad lawn. there are takes on this quarter. it is eps myth. that is uncharacteristic for this stock. it is third one in year-and-a-half since the
passing of steve jobs. there are cracks in this story forming i think, yes. liz: okay. let me get to the ipad. 14 million were sold. that is gain of 26% year-over-year. the iphones, we haven't seen a breakout whether it was iphone 5s or 4 ss and how they're doing. mack backs 4.9 million, up one percent year-over-year. does that surprise you? does that annoy you? >> the macbook number is a good one. that is strong product refresh they put in front of investors and refreshed the macbook pro at 13 inch. that is good number especially these are premium units selling in a tough macro environment. it shows by pushing performance they are being rewarded on the upside. liz: stock is down we want people to know that. with refreshes of some products not taken into accounts of this report, if there is selloff it is time
to buy? >> i think if there were a big selloff based on some of the difficulties the competition are having, you had microsoft here on the program. they're a little bit vulnerable right now, i think you would buy a selloff if it is a deep one. if it is not a deep selloff i'm fundamentally neutral on the stock. we'll learn more next week when google has its next generation products unveiled. a little more to stay tuned for heading into the holiday season. david: allx, what is their biggest concern now? is it lack of sales or competition? is it android? is it the global slowdown? what is their biggest concern right now? >> i think the first and most important concern is the closing gap between apple products and the competitive products and especially some of those high performing competing products that have subsidized business models and hence selling at lower gross margins. david: forgive me for interrupting alex. we all know steve jobs was against a mini ipad. is that why they went against the wishes of late
leader of apple in order to come out with this because they are worried about the competition? >> you're making a great point. this is one area where they're not a leader, they're a follower. they were not too long ago bashing the 7--nch form factor. yes, here is something i think they have had to do because of the competitive landscape. they're being forced into a category they probably rather not be. in probably would be in larger form factor, higher gross dollar margin territory. the other concern in is tough macroeconomic environment have they saturated at the premium price level? hence you have to go to ipad product at lower sales. liz: this accounts 60.06% from the year ago quarter. they have done extraordinarily internationally. how much is unveiled of course when they unveiled the ipad in china? >> so china is going to be one of those markets that's still relatively untapped. you had ballmer in talking about the opportunity for
microsoft. the same is true for apple. that is an interesting battle ground for both companies. last quarter asia was down pretty sharply. so it's going to need to come back here in the december quarter, a little bit in the march quarter because the later timetable for the chinese lunar new year. china is one of the key drivers for this story and it comes back to that, are they saturating the price points china can support. that is a question that remains to be answered. david: alex, let's pull back a little and look at the overall scene. we saw apple stumble with the maps deal series. is it possible they're losing steve jobs edge always being ahead of competition? you said following on tablets and mini tablets. is it fair to say they have lost that jobs edge? >> so they're still fielding march develops of engineering. their devices are wonderful. there is no doubt about that. but, yes, it is somewhat uncharactertic to see some
of these stumbles. you mentioned siri. you mentioned maps. there are some quality issues with some of the builds on the new iphone 5. there is talk of supply constraints on these devices as well. it is not executing in what has become the norm for apple in recent years. liz: let's remember too, this is important because i'm seeing a headline here at that says, u.s. stock index futures are now falling, they are now falling on the apple results which is pretty significant. now apple of course is part of so many indices because they are so huge now that a lot of, say, for example, s&p, nasdaq, the dow jones industrial average, and a lot of fund have to own apple. now the futures are actually moving on this. the futures are falling following apple's results. the stock is still halt. if you could guess what happens when it started trading again, what do you think? >> i think it would be down, i think only modestly. it is not a big miss. it is a top line number. also a strong iphone number. i think that is encouraging
because we still have the holidays ahead of us, there is a quite a bit of talk of supply constraints. as supply constraints come off we could still have a very merry christmas for apple. but you think, yes it is a little bit disappointing and i think yes, the company is not executing as strongly as it had in the past. david: alex, what a terrific analysis of what's going on there with apple. we really appreciate you coming in with that analysis of apple. >> thank you. david: the stock is still halted but some of its suppliers as liz was trading are trading down of a hours. doesn't look good. we'll keep you in touch with what happens after hours with apple. time for a look at today's market drivers. stocks eking out gains with all three major indices closing in the green. this is the following the worst five-day stretch since may. telecom and materials lagged. pending home sales showing slight improvement in september, climbing 0.3%.
index last month was up 14.5%. compared to a year ago. manufacturing activity in the plains states region contracted for the first time this year in october falling to a three-year low. the federal reserve bank ever kansas city saying its activity index dropped to negative 4 from a positive 2 in september. >> just how much can be made on squishy colorful shoes with lots of ventilation and swiss cheese holes? i'm talking about crocs. the stock taking a big hit after profits and forefell short of expectations. what is being done to get demand up again? i will ask the ceo exclusively rightthere on fox business. [ male announcer ] do you have the legal protection you need?
at legalzoom, we've cated a better place to turn for your legal matters. maybe you want to incorporate a business you'd like to start. or protect your family with a will or living trust. legalzoom makes it easy withtep-by-stehelp when completing your personalized document -- or you can even access an attorney to guide you along. with an "a" rating from the better business bureau legalzoom helps you get personalized and affordable legal protection. in most states, a legal plan attorney is available with every personalized document to answer any questions. get started at legalzoom.com today. and now you're protected.
>> i'm adam shapiro with your fox business brief. wall street rounding out the day in green with the s&p snapping its worst five-day stretch since may. on the flipside investors are bearish for amazon after the online marketplace posted disappointing third quarter results. the company reported larger than expected losses as it invested heavily in operations and doing an impairment charge for its investment daily deal company living social. american airlines and its creditors are reporting meeting with us airways tuesday. "wall street journal" reports it is part of an effort to find out how much additional revenue and cost savings, merger between the airlines would generate. amerrcans's parent company, amr is weighing a possible merger with us airways with a plan to emerge from bankruptcy as an independent airline. you the power to prosper.
liz: breaking news. the nasdaq marketsite is saying now that apple will resume trading. it is halted it will resume trading at 4:50 eastern time. we're five minutes from apple restarting its trading once again. last trade was $609 a share. they did miss on some levels. we're watching this very, very closely. let's get to shares of crocs. they fell rather precipitously, 20% following the company's third quarter earnings which beat on the bottom line. they did very, very well, net income up 49% year-over-year. they missed on revenue. they downgraded what they're expecting for the rest of the year. so what's the strategy moving forward for these iconic shoes? joining us in a fox business exclusive, john mccarvel, crocs ceo and president. great to have you here. i look at the numbers, i say what is so horrible about this? i guess analysts are starting to feel you guys need to communicate better
with wall street. you keep saying you will do one thing and there is miss on one level or another. what happened this time around? >> well, first, liz, thank you for having us. liz: of course. >> you know i think for a global business today, you see it with apple and you see it with a lot of other people in the footwear and apparel industry it's not the market i think investors have come to know over the last three, four years, where brands were growing quite nicely in global markets and investors enjoyed the fact that businesses were diversifying themselves. now today i think a little bit of the challenge is, we're highly diversiffed brand from a geographic standpoint. 65% of our revenue comes from outside the u.s. and in that challenge of europe and certain asian markets, that uncertainty causes minor changes. as you said, we were off $4 million from our forecast
for plant with a pretty tough economic situation in europe and investors don't like that uncertainty in any type today. liz: i guess then the obvious question would really be, do you see that turning around anytime soon and what are you doing to capitalize on what areas that are strong? >> i think what we said is the backlog is up year-over-year 33%. so what are we doing in a diverse market like this? we're trying to take market share where we can and i our business projections for spring-summer 2013 i think we're in a good position to do that. the backlog, you know, substantially is back. liz: i'm holding up your iconic shoe of course, the one everybody knows. i want people to know the resin made shoes with a hole in it was idea after boater. i'm trying to of using boat
shoes and get moldy and start smelling. these don't get moldy or start smelling. i'm showing something that doesn't look like a crock shoe. you had a winner with the boot sales. tell me about the boot sales. you were smart any of to diversify with and you were not a one product company. tell me what you're doing with the boot line? >> thanks. it is a labor of love with the product marketing standpoint over the last two three years. that particular product you have on the boot line is the third generation fall-winter product for men that continues to evolve and continues to improve. fall-winter hasn't been a place where people would think about crocs. so we have a work a little bit harder, be a bit more innovative when it comes to new product. >> do you expect that the next quarter will show a little bit of improvement here in the u.s.? do you see any green chutes in the u.s. economy?
>> liz, what we said yesterday we're proud of the american u.s. business in the quarter. it performed better than expected. comp store sales for august and septemberrwere up over newspaper% and our own retail sales up wards of fourth quarter with a lot of our major partners vfw, famous footwear, belz, bell's, rack room, these are the people who see the same kind of things we do in the space. so we're actually more bullish i think this year on our u.s. business than last year. liz: oh that's good. that is good to here. john, good to have you. next time you're in town or when you want to join us you know i follow the crocs story. i find it interesting. 30 or 40 stores you expect to open in the next quarter. john mccarvel, crocs ceo and president. thanks for joining us. >> last time i came you
weren't in there. i will try to do it when you're in town. liz: welcome anytime. thank you very much. let's get to adam shapiro. we're seconds away apple trading again. >> they will roughly trade in nine seconds. a lot of people wonder how they will react. charlie brady said margin fell to 40% from 43%. here we go. apple seems to be falling. it is down, 3, almost 4% in after-hours trading. investors don't seem to like this report, liz. david: don't like it at all. in fact it was a miss on the top line and it was the numbers really, the numbers of ipads and particularly iphone sales that bothered investors a lot. our last analyst alex was very clear they were expecting 28 million iphone sales. the number came in at 26.9, clearly below the number people were expecting or hoping for anyway. number of ipads sold, 14 million. again alex was expecting something north of 16 million to be satisfied with the shares worth their value
above 600. as you can see it is trading below 600 right now. whether this sticks tomorrow we'll have to wait and see, again trading down from where it closed, liz. liz: annual high for the stock, $705. so we're off 100 bucks from just year-over-year. closing value today you see. now the ask is getting closer again. seems to be reversal just a bit. this will take a while to shake out. we have it. we're watching it. foxbusiness.com. i don't know if you have the fox business app but you have to get that for all you apple fans we've to the that too. david: one thing to keep in mind with apple stock, conservative 12-month target for 39 top analysts on apple, conservative target is $790. if you're willing to hang in there, these analysts believe over time, over 12-month period it will get back up to 790. right now trading below its close. more to come on apple and a lot of other things right after this
david: back to apple news. adam shapiro has been going over the numbers. we're talking about iphone sales and ipad sales, both disappointing. what about the gross margins, adam? >> they fell to 40% from 40.3. we're talking about this. maybe cost of doing business with them. the chinese problems with foxconn if that is playing
into what is going on with apple. look at the 17 million i pads in the third quarter now fallen to 14 million we were surprised when they announced the ipad 4, refreshed ipad. are they getting competition from google or nexus 7? are the lowest price tablets eating into apple and that's what we're seeing? liz: now the surface we'll watch it all, adam. thank you very much. you see the bid ask. melissa francis will continue to cover this story in her next hour. money with melissa francis coming up next. david: i've seen a lot of guys with the galaxies. they're getting into ipad mini but handheld devices are getting to the size of mini tabs. liz: competition for everybody. we'll see you tomorrow